Short-Term Rental Tax

Newport News Short-Term Rental Tax
The City of Newport News charges a tax on the gross proceeds of any business engaged in the short-term rental business. A business is engaged in the short-term rental business when:
  • Not less than 80% of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of short-term rental property, other than heavy equipment property for periods of 92 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee: or
  • Not less than 60% of the gross rental receipts of such business during the preceding year arose from transactions involving the rental of heavy equipment property for periods of 270 consecutive days or less, including all extensions and renewals to the same person or a person affiliated with the lessee.
The Short-Term Rental Tax is charged instead of the business personal property tax that would normally be assessed on qualifying business equipment.

Definitions
"Short-Term Rental Property" is all tangible personal property held for rental and owned by a person in the short-term rental business except: trailers as defined in §46.2-100 of the Code of Virginia, and other personal property required to be licensed or registered with the Virginia Department of Motor Vehicles, the Virginia Department of Game and Inland Fisheries, or the Virginia Department of Aviation.

“Heavy equipment property” means rental property of an industry that is described under code 532412 or 532490 of the 2002 North American Industry Classification System as published by the United State Census Bureau, excluding office furniture, office equipment, and programmable computer equipment and peripherals as defined in §58.1-3503 A 16 of the Code of Virginia.

Tax Collection
Every qualifying short-term rental business is obligated to charge and collect the tax from the customer at the time of the rental and the quarterly reporting of short-term rental property tax must be filed no later than the 15th day of the month following the end of each quarter. The filing required to be submitted on the 15th will be your billing and is to be paid no later than the last day of the month following the end of the quarter of collection.

Tax Rate & Additional Information
Refer to the Business Related Taxes rate schedule for current tax rates.

For assistance with the Short-Term Rental property tax, please call the Business Related Taxes Department at 757-926-8644.